The White House is considering withdrawing its support for the entire U.S. digital currency market structure bill after Coinbase withdrew its support and refused to return to negotiations, according to multiple reports.
It is said that the administration is pushing for a last-minute agreement on the rules for stablecoin returns that appease banks and bring sector players back into alignment. If Coinbase refuses to re-engage, the White House may withdraw from the bill.
The confrontation with the CLARITY Act is escalating
This confrontation represents the latest twist in the saga of the CLARITY Act, which has rapidly evolved over the past week.
Officials are said to be very angry about what they described as the "unilateral" step taken by Coinbase earlier this week. The company allegedly did not notify the administration in advance.
The CLARITY Act, passed by the House, is designed to address a fundamental issue in the regulation of U.S. digital currencies. It decides whether most digital assets should be overseen by the Commodity Futures Trading Commission or the Securities and Exchange Commission.
Initially, this framework had broad support from the industry.
However, the Senate Banking Committee has proposed a complete rewrite of the bill, expanded the authority of the Securities and Exchange Commission, tightened disclosure rules for tokens, linked stablecoin rewards, and brought parts of DeFi closer to compliance and oversight systems akin to banks.
Coinbase responded by withdrawing support, arguing that the Senate draft undermines tokenized equities, weakens the role of the Commodity Futures Trading Commission (CFTC), restricts decentralized financing, and allows banks to limit competition in stablecoins.
This move immediately disrupted the course of the bill and contributed to the Senate's postponement of the planned profit increase.
Why is the White House intervening?
The White House's involvement reflects the political importance of the bill for the Trump administration.
The White House is now pushing for a compromise on the yield of stablecoins. This is a major point of tension between cryptocurrency companies and banks, in order to save the legislation and provide a unified interface.
Failing to do so could lead the administration to withdraw its support rather than allow the bill to publicly stall due to internal conflicts within the industry.
Timing has now become critical.
Passing the CLARITY Act before the midterm elections in November will allow the Trump administration to achieve a significant legislative victory in financial innovation, regulatory clarity, and U.S. competitiveness in digital assets.
Delays after the midterm elections could completely reshape the political landscape. Committee leadership may change, regulatory priorities may shift, and the new Congress may be less accommodating to the administration's approach to digital currency markets.
For the White House, passing the bill quickly reduces political risks and avoids reopening negotiations under a power balance that may be less favorable.